9911796707
TMI Blog2024 (10) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... arried out on money control and after noticing that there was fluctuation in the price, has come to the conclusion that because the assessee has made transaction in the shares of the said company there was escapement of the income on the ground that the assessee had indulged in generating non-genuine gain by trading in Kusha Script on BSE during the year under consideration, except such information, no other information relating to the assessee or in connection with the transaction carried out by the assessee was recorded in the reasons by the AO. As apparent that the even if the addition is made as proposed by the AO in the reasons recorded, being the income escaped from the assessment, as the income which is taxed u/s 115JB is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring and final disposal of this petition to maintain status quo in the matter and ask the Respondent and its subordinates not to take any action or to do anything in furtherance and pursuance of this impugned notice. d) To allow this Petition with cost. (e) To pass any further or other orders as the Hon'ble Court may deem proper in the interest of justice and in the circumstances of the case. 4. The brief facts of the case are as under: 4.1. The petitioner is a closely held company engaged in the business of trading of cement, steel and commission agent. For the Assessment Year 2017 18, the petitioner filed original return declaring total income of Rs. 52,08,790/- on 30.10.2017. 4.2. The return of income filed by the petitioner was sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income on 14.04.2021 and sought the copy of the reasons recorded which were provided by the respondent Assessing Officer along with letter dated 19.05.2021. The reasons recorded which reads as under: Reasons for reopening the assessment in the case of M/s. AIRAN LIMITED for A.Y.2017-18 u/s 147 of the I.T. Act. 1. Brief facts of the case: The assessee filed its return of income for the A.Y.2017-18 on 30.10.2017 declaring total income at Rs.52,08,790/-. Assessment u/s. 143(3) was completed on 30.11.2019 by determining total income at Rs. 55,63,304 /-. 2. Brief details of information received: In this case, information has been received on Insight Portal in March 2021. On verification of the share price movement of Kushal Limited carried out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions. These records are systematic, actual and contains corresponding cash transactions against bogus LTCG benefits provided to the beneficiaries. It may not be out of place to mention that SEBI has passed Adjudication Order No. RA/JP/250- 254/2017 dated 22.12.2017 in which it had clearly identified persons who involved in synchronized share trading in Kushal scrip. It has been established that Kushal group members have been found involved in manipulating securities capital market to help the beneficiaries to convert their ill-gotten gains into tax exempt bogus LTCG. After analysis of the information with the facts available on record, it can be concluded that the assessee has indulged in generating non genuine gain amounting to Rs 67,56 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is determined under Section 115JB of the Act which would be much more even after making addition and therefore the jurisdiction assumed by the respondent Assessing Officer on the basis of the reasons recorded would be a futile exercise. It was further submitted that the petitioner had already included the amount of transactions in question with the Kushal Ltd. in profit and loss account forming part of the schedule of the other income and thereafter the same is considered separately in the statement of computation of the total income. In such circumstances it was submitted that the respondent Assessing Officer could not have assumed the jurisdiction for reopening of the assessment of the petitioner company. 6. On the other hand, learned Sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference may be made as the assessee will have an alternative remedy to challenge the order of assessment if any addition is made before the CIT appeals. 7. Considering the above submissions and on perusal of the reasons recorded, the Assessing Officer after considering the information which was received with regard to the share prices movement of the Kushal Ltd. carried out on money control and after noticing that there was fluctuation in the price, has come to the conclusion that because the assessee has made transaction in the shares of the said company there was escapement of the income on the ground that the assessee had indulged in generating non-genuine gain amounting to Rs.67,56,951/- by trading in Kusha Script on BSE during the year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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